Xi visit revs up strategic ties for China, Germany

BERLIN -- Export giants Germany and China pledged to deepen their strategic ties Friday during a landmark visit by Chinese President Xi Jinping to Berlin, which also saw the inking of a raft of economic pacts.

Germany's leading car industry took centre-stage on Xi's third stop of a European tour, with auto giant Daimler announcing a production deal with its Chinese partner worth 1 billion euros (US$1.4 billion).

The partnership with Beijing Automotive Industry Corporation (BAIC Group) plans to expand production capacity at their joint venture Beijing Benz (BBAC) by 2015.

Xi road-tested a few motoring metaphors for the occasion, saying that as long as the two countries' partnership had "a full tank" and good steering, it would have a "promising future."

"When driving a car one mustn't just keep the few meters ahead in view but one must also look into the distance. That's the only way to guarantee a safe trip," Xi told a joint press conference with Chancellor Angela Merkel.

Germany is China's biggest EU trading partner, while the Asian giant is a massive market for German machines, technology and cars.

The two leaders said they were dedicated to building on their close ties with regular consultations on regional and global issues and stronger coordination in the U.N., G-20 and other international bodies.

With all eyes fixed on Russia's next move in Ukraine, Merkel said their talks had also covered the crisis in Crimea and reiterated that Germany was "very clearly for the observance of territorial integrity ... and international law".

For his part, Xi said China sought to stay out of the internal affairs of other states and respected all nations' integrity and sovereignty, but he called on all parties to continue to push for a political and diplomatic solution.

"We support the constructive efforts which the international community is undertaking to reduce tension," he said.

German Chancellor Angela Merkel, center, watches as CEO of Berlins ALBA Group company Axel Schweitzer, right, hands over a shirt of the ALBA Berlin basketball team to Chinese President Xi Jinping, left, after a contract singing ceremony at the chancellery in Berlin, Germany, Friday, March 28. (AP)